How Much Speed is Enough?

Lots of people think 100-Mbps or 1-Gbps access services are the wave of the future. One facetiously wonders whether they might always be. Mostly everybody likely agrees that bandwidth requirements are growing, and that "more" bandwidth is a good thing. The problem is that it is hard to answer the question of "how much is enough?"

StarHub, for example, already offers a commercial 100-Mbps service, and sells the "MaxOnline Ultimate" service for $62.40 a month, in Singapore.

Only five percent of customers have bought it, says Neil Montefiore, StarHub CEO. "I'm unconvinced about consumer demand for 100 Mbps."

U.S. access providers who already sell 50 Mbps or 100 Mbps connections seem to have had the same results. When it is available, relatively few customers choose to buy services running at such speeds.

"No one is quite sure what people will do with 100-Mbps symmetrical," he said. "Do people really need that speed?" The other issue is whether raw bandwidth of very-high capacity is sufficient, rather than merely necessary, to ensure creation of compelling and useful applications and services. In other words, higher bandwidth is needed as a prerequisite for valuable new apps. But it isn't so clear that where 50 Mbps or 100 Mbps access is available, that much of anything noteworthy has developed, beyond what could be done at 10 Mbps or 20 Mbps, for example.

The other question is how much demand there is for very-high-speed services, even when prices are reasonable.  If customers can buy 100 Mbps for about $63 (U.S. currency), but they can buy 50 Mbps for $50, is the issue the extra bandwidth or the value-price assessment which leads people to conclude that high bandwidth, but not super-high, is a better deal, and sufficient to accomodate their needs.

Consumers can buy 16-Mbps service for about $37 a month, as well, or cheaper 3 Mbps or 6 Mbps services.


German cable network operator Kabel BW claims that around 40,000 customers are using broadband with speeds of 50 Mbps or 100 Mbps. About three million homes are able to buy service at those rates. So buyers represent about one percent of customers.

Also, the price for the 50-Mbps access service is about $41 a month. What is not clear is what percentage of those buyers actually are businesses, rather than consumers.

It is a laudable thing to call for 100 Mbps service, available to most U.S. users, by 2020. What is missing at this point is evidence of robust-enough demand for speeds of 50 Mbps, at $100 a month.

Kabel BW has found only about one percent take rates, at prices of $41 a month. Obviously, no investor in his or her right mind would loan money to a service provider to offer 50 Mbps service at the same prices as users presently pay.


A new survey by Leichtman Research Group finds that 71 percent of U.S. broadband Internet subscribers are very satisfied with their current Internet service at home (rating satisfaction 8-10 on a 10-point scale), while just three percent are not satisfied (rating satisfaction 1-3).

To be fair, with broadband, appetite changes over time. But the issue is how to match actual demand, at market prices, to the amount of bandwidth that should be delivered.

While 77 percent of broadband subscribers do not know the download speed of their Internet service at home, they are generally pleased with the speed of their Internet connection. Overall, 66 percent of broadband subscribers rate the speed of their connection 8 to 10 and six percent rate it 1 to 3.

The findings are based on a telephone survey of 1,600 randomly selected households from throughout the United States. The survey also found that more than 70 percent of respondents said they subscribed to a broadband service.

Some 26 percent of broadband subscribers are very interested in receiving faster Internet access at home than they currently receive (rating interest 8-10 on a 10-point scale), while 44 percent are not very interested (rating interest 1-3).

Of all Internet subscribers, three percent of respondents say that broadband is not available in their area. In rural areas eight percent of online households say that broadband is not available in their area.

Overall, 1.4 percent of all households are interested in getting broadband, but say that it is not available in their area. Less than one percent of all households are interested in getting broadband, but cite cost as a reason for not currently subscribing to broadband.

Nobody can tell "how much bandwidth is enough." For the moment, though, the evidence here seems to suggest that there is not huge pent-up demand for dramatically-faster speeds. So far, the evidence from markets such as Singapore and other U.S. areas where either 50 Mbps or 100 Mbps is available for purchase, does not support the thesis that dramatically-higher speed is a huge need, at the moment, at least at prices far lower than they presently are.

Everyone expects demand for bandwidth to keep expanding. What seems less clear is the pace of that growth.

Will iPad Be the Fastest-Adopted Mobile Device, Ever?

At this rate, the Apple iPad might wind up becoming the fastest-growing mobile device ever.

Borders Essentially Drops E-Reader Price Before Release

Borders, which will begin shipping the Kobo, its e-book reader, in early July, has joined the round of price cutting going on in the e-book reader space by bundling a $20 gift card with the purchase of its $149 Kobo. Though the originally-planned price remains in effect, the gift card effectively lowers the cost to $129.

But Borders also plans to make its inventory available to other devices such as the iPhone, Android devices and the iPad. The unresolved issue is how the e-book reader ultimately will fare as a way to create and protect a content distribution business, since virtually all the leading readers are moving to application-based delivery in addition to sponsoring their own hardware.

The price cuts come only a couple of months after Apple introduced its iPad, which offers considerably more features than e-readers and starts at $499. Many analysts believe that booksellers will not compete with the iPad but will slash e-reader prices and make up the loss of money by selling more e-books.

U.S. sales of digital reading devices are projected to reach five million units this year from 2.2 million in 2009, according to the Consumer Electronics Association

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Spread Networks Offers New "Lowest" Latency Route Between New York and Chicago

Spread Networks, a privately-owned telecommunications provider has launched a dark fiber private network specifically optimized for ultra-low latency for financial industry customers who communicate between Chicago and New York trading centers.


The TABB Group estimates that the $15 billion spent by financial firms on data centers in 2009 was largely driven by a need to reduce propagation delay by collating servers. But the Commodities Mercanile Exchange remains in Chicago, while trading partners do business in New York and London, as well as with dozens of other financial centers around the world.

That irreducible geographic fact means collocation can solve only some latency issues. Transmission networks must do some of the work as well. That explains why there has been a relative flurry of activity on the Chicago-New York route this year. A single kilometer of optical fiber path adds about five microseconds worth of latency to a connection. So it helps to have the shortest physical route between Chicago and New York.

Over time, the shortest path has dropped from roughly 1,000 fiber miles to 900 fiber miles, now to 825 miles.

In part, Spread Networks can offer unparalleled levels of latency performance because it has built a brand-new, direct route over the shortest possible route from New York to Chicago, 825 fiber miles long, reducing round-trip latency to 13.33 milliseconds. Up to this point, the lowest latency on the New York-Chicago route was about 15.9 milliseconds, according to Brian Quigley, ADVA Optical Networks senior director.

Where other low-latency connections between those cities uses railroad rights of way, Spread Networks has built along alternate routes, to shave distance, and hence delay. It’s just a guess, but if you want to follow the straightest-possible route between New York and Chicago, you’d follow U.S. Highway 80. That would allow a carrier to relatively easily negotiate rights of way agreements with a few entities and obviously allows easy trenching along the medians.

“Spread Networks has established the competitive standard for trading latency between these two important
financial centers,” said David Barksdale, CEO of Spread Networks (Barksdale was Netscape’s CEO) .

Spread Networks provides customers two strands of dark fiber, which are lit using optoelectronics provided by ADVA Optical Networks. Traffic is kept at layer one to avoid the additional latency if the traffic were carried at a higher level of the protocol stack.

The route terminates at 350 East Cermak Road in Chicago Illinois (telX) and 1400 Federal Blvd in Carteret, New Jersey (Lexent Metro Connect).

As part of the service, ADVA monitors the routes, providing real-time latency reporting. Repeater huts are spaced at 120 kilometers and the route uses low-noise optical amplifiers, dispersion compensation, cut-through switches and no protocol conversion or higher-level switching as part of the effort to achieve the lowest-possible latency performance.

How Regulation Can Make or Break an Internet Business

Google and Twitter have weighed in on the 'hot news' doctrine, which grants newspapers in some states a time-limited, quasi-property right over facts they report, arguing that the legal concept is old 'n' busted in the instantaneous Internet age.

The companies filed an amicus brief in the legal case between financial website theflyonthewall.com and Barclays Plc, claiming that Internet chatter cannot be contained and that restricting the spread of news content could hurt the public.

A U.S. federal judge ruled in March 2010 that a news site called "theflyonthewall.com" had misappropriated content from major analyst firms by publishing highlights of new equity research by Morgan Stanley, Barclays Plc, and Merrill Lynch.

The judge agreed that they had invested time and resources into researching the market, and that flyonthewall.com was making money off of their hard effort by offering subscriptions so that users could access The Fly's near-realtime writeups of the analysts' work.

An injunction was issued, but then flyonthewall.com asked whether it was permissible to publish information that already had appeared elsewhere, as for example news reports by Dow Jones, Reuters, Bloomberg or the Wall Street Journal.

Google and Twitter have filed briefs supporting flyonthewall.com's right to publish once the information already has been made available elsewhere on the Internet.

Google and Twitter pointed out that it's nearly impossible to implement some period of exclusivity for news when it can spread so quickly across blogs, Twitter, Facebook, and so on, and that upholding such a restriction could actually hurt the news-consuming public.

It's just another example of the decisive rule regulations and laws can have in creating or destroying a business model.

Google and Twitter pour cold water on "hot news"

Google Voice Now Open to Everyone in the U.S.

Google, Apple, Microsoft Trusted by Half of Adults, Just 8% Trust Media

Nearly half (49 percent) of U.S. adults trust Apple, Microsoft and Google, according to a new Zogby Interactive survey.

About 13 percent of respondents trust Facebook.

Almost nobody trusts traditional media or Twitter, each of which had a trust level of eight percent.

Google And Apple Trusted More Than Facebook And Twitter | jatiN mahindrA doT coM